Clause 6 - Regulating trade in rebated heavy oil etc
Finance Bill
6:00 pm
Mr Christopher Chope (Christchurch, Conservative)
I was expecting the Financial Secretary to speak to the clause first, because I assumed that he would wish to counter the criticism made by the Federation of Petroleum Suppliers, the trade association for the oil distribution industry in the United Kingdom and the Republic of Ireland. It represents the majority of distributors in the UK, from the small family businesses that form the greater part of it to the distribution arms of some of the major oil companies.
The FPS met Customs and Excise to discuss its proposals for tackling misuse of rebated fuels before submitting comments on the consultation document in February. The whole of the industry, I am told, is united in its view that the Customs and Excise proposal
''will not be effective in tackling the problem but simply add to the burdens on industry, being particularly onerous for small businesses, which make up the majority of distributors.''
The FPS is
''very disappointed that the Treasury has gone ahead with its proposed approval scheme for distributors and has ameliorated its original proposal only very slightly in the light of''
the comments that it has made. It says:
''The Government made a commitment not to place excessive burdens on small businesses by way of regulation. With the majority of distributors beings small businesses, the scheme to limit misuse of rebated fuels repudiates this commitment, our view being supported by''
none other than
''the DTI's Small Business Service.''
Those are serious allegations being made against the Government. I hope that the Financial Secretary has an answer to them, because another point that the FPS makes is that the simple way to eliminate fraud is to lower duty on road fuels. It also says that the present scheme will be unworkable and unfair to distributors, and that it does not address the problems in Northern Ireland. We know from the National Audit Office report and other information that the problem of fraud and duty avoidance in Ireland, and particularly Northern Ireland, is by far the largest proportion of the overall problem.